Impermanent Loss Explained

Impermanent Loss is one of the biggest risks when Yield Farming. With the rising popularity of Yield Farming, many projects are asking farmers to stake funds in Uniswap or Balancer liquidity pools- so understanding Impermanent Loss becomes VERY important. This type of risk happens when a cryptocurrency suddenly drops in value, causing both staked funds to be lost.

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I’m not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video.